Southwest Airlines Co (NYSE:LUV) shares soared on Thursday following the release of fourth-quarter earnings and a conference call.
• Southwest Airlines stock is at critical resistance. Why are LUV shares at highs?
Mixed Q4 Results Beat EPS Expectations
The airline operator reported fourth-quarter revenue of $7.44 billion, up 7.4% year-over-year but missing the Street consensus estimate of $7.50 billion. However, Southwest beat earnings expectations with fourth-quarter EPS of 58 cents, compared to the Street estimate of 57 cents per share.
Guidance Signals Strong 2026 Outlook
Southwest issued bullish guidance for 2026, projecting first-quarter EPS of 45 cents or higher versus a Street estimate of 34 cents. The company’s full-year EPS guidance of $4 or higher significantly exceeded the Street estimate of $3.19, representing year-over-year improvement of more than 300%.
During the conference call, according to Benzinga Pro, Southwest executives indicated that 2026 is positioned to be a year of margin expansion and higher-than-2025 earnings. The company plans to keep management headcount expense flat at 2025 levels in 2026.
Management Commentary
Southwest’s CEO Bob Jordan, during the conference call, stated that the company does not have any active aircraft request for proposals in the market.
LUV Price Action
Southwest Airlines stock traded up 15.76% on Thursday, with the stock hitting an intraday high of $47.30 as of publication — surpassing its 52-week high of $45.02, according to Benzinga Pro.
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